Food Forum: Understanding Today’s Red Meat Consumer
The retail landscape is changing, and younger consumers will shape the future of the red meat category.
January 1, 2018
It is no secret that the protein category has seen challenges over the last five years. The most recent Technomic Center of the Plate Beef and Pork Report reveals fresh meat shopping trips have declined. This may, to some degree, be attributed to a continual rise in red meat prices since 2010.
Do not be fooled, the dip in demand does not mean consumers have stopped craving red meat. With 97 percent household penetration, consumers still plan meals and occasions around red meat. In fact, through proprietary consumer research we have found the youngest red meat purchasers—Millennials—proportionally spend more on fresh red meat than any other age group.
Early in 2015, Cargill conducted a Proprietary Red Meat Consumer Study of 8,000 fresh red meat consumers. This study showed how consumer habits are evolving and confirmed how important it is to understand buying habits and preferences that ensure we make the right decisions to maintain red meat’s relevance.
Our research shows 51 percent of consumers purchase meat based on quality, while 49 percent purchase it based on price. Although a slight majority of consumers buy based on quality; how they define quality may vary significantly. Interestingly, we found consumer similarities when sorting research data by age group.
• Baby Boomers that prepare beef six or more times per month are considered true meat lovers and tend to be our most loyal consumers. However, they represent a true dichotomy when defining quality. Some define quality in a traditional way: by grade, marbling juiciness and tenderness. The remainder of the generation is comprised of meat lovers that place value at the top of their list when purchasing red meat. They view red meat as a commodity and are not willing to pay a premium.
• Generation X consumers determine quality by the tenderness of the product and by their ability to discern the food’s story—where, how and by whom the food was produced.
Cargill’s research also revealed the product mix each generation desires, based on the reasons that bring them to the meat case.
Quality-conscious Baby Boomers mainly purchase red meat to connect with others through a special occasion. Confident in the kitchen, this group has a passion for food, knows what cuts to buy and knows how to prepare fresh red meat. Alternatively, value-conscious Baby Boomers often purchase red meat as part of their routine. Also experienced in the kitchen, they are very comfortable with shopping for, and preparing, red meat.
A large number of the Gen Xers fall into the “foodie” category and like to purchase red meat to connect with others. They often seek products with claims and stories they can share with friends to help enhance their image and reputation as knowledgeable foodies.
Millennials share similar motivations with Generation X, but because they are at a different income threshold and life stage, their behaviors do not always align. Millennials look for unconventional information about preparing food, complementing cuts and the latest trends that help support their busy lifestyles.
What may be somewhat surprising is how important Millennials are to the future growth of the red meat category. While Millennial budgets and kitchen experience is limited now, over time they are going to gain experience and confidence in purchasing and preparing red meat products. They were the only group in our study that planned to spend more on red meat next year compared to this year, which is very encouraging.
Make no mistake, this younger fresh meat user thinks and acts differently than older, more confident users the industry knows. Keeping Millennials engaged in the fresh meat case will require a shift in thinking from product mix, rethinking the role brands play, how the case is merchandised and priced, and what role value added products play in helping get meals to the table to meet the demands of a busy lifestyle.
It is not enough to know our consumers, but we must also understand the motivations behind why they are buying red meat and what they want from the experience. Having quality cuts on hand for special occasions will likely increase basket ring, drive repeat business and ultimately contribute to a memorable event your consumer is trying to create.
Brian Bell is vice president of sales and marketing at Cargill. He can be reached at [email protected].